How to best insure gift cards with USPS, FedEx, and UPS

Created:   |   Updated:

Whether it’s for the holidays, a special occasion, or any other reason, sending gift cards is a great way to reward or reimburse family, friends, or customers. See how ShippingEasy makes sending gift orders super simple. However, unlike digital transfers or credits, a gift card can be lost, misplaced, or mis-delivered and there’s often no way to recover it.

That’s where gift card insurance can come in handy! Many people don’t know this, but gift cards can be insured to their maximum value (100%) if you follow the proper mailing procedure. Just make sure you’re shipping with the right carrier and carefully read the fine print.

Read on for more information regarding carriers supported by ShippingEasy:



Normally, a gift card will only insure up to $15 if you send it by Express Mail. The reason is that it is considered “cash or negotiable items” and that’s what they value the plastic card at.

However, if you ship your gift cards Registered Mail you can insure it for the full value of the gift card. This is generally a smart move as it protects your gift card and makes sure it gets to the proper addressee. 



UPS will mail gift cards, does not reimburse or insure them. A direct quote from their tariff page says:

In no event shall UPS be liable for the face value of the check(s). UPS’s liability for a package containing a phone card, gift certificate, or gift card is limited to the cost (which shall not include any amount of the value attached to the card or certificate) of replacing the physical card(s) or certificate(s), not to exceed $100 per package. In no event shall UPS be liable for the face value of any phone card, gift certificate, or gift card.



Believe it or not, FedEx actually considers gift cards to be “prohibited items”.

It lists “money orders, gift cards and gift certificates” under its tariff restrictions. Needless to say, you won’t be able to insure your gift card with this service.


In conclusion 

Always be sure to check the terms of your gift cards since many are replaceable by the issuer of the gift card if it becomes lost or stolen.


Simplify your shipping (and save) with ShippingEasy. Start your 30-Day Free Trial.


Related articles:

Are there any restrictions on what I can insure?
What USPS services include insurance coverage and offer additional insurance? 
How to: Process gift orders with ShippingEasy
Best of Rules: Print a special packing slip for gift orders
Can I see the real-time status of my shipments?


Please sign in to leave a comment.

Community browse


Questions & Answers

Issues & Bugs

Beta Feedback


Productivity: Features, Interface & Settings

Partners: Integrations, Carriers & Stores

Shipping: Orders, Labels & Shipments

Inventory: Products, Purchase Orders & Suppliers